LCC Projects Limited

Sector: Infrastructure — Engineering, Procurement & Construction (EPC) — Irrigation and Water Supply

1. Executive Overview

LCC Projects Limited is a multidisciplinary Engineering, Procurement and Construction (EPC) company based in Gujarat, primarily focused on the irrigation and water supply projects segment. The Company was originally established as a partnership firm in 1932 as "Laxmi Construction Co." The Company has executed a diversified portfolio spanning dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation systems, water supply schemes, and other allied EPC works.

According to the ICRA Report, LCC Projects is a multidisciplinary large corporate EPC company from Gujarat, currently poised to execute infrastructure projects across 12 states in India. The Company's operational footprint spans Gujarat, Madhya Pradesh, Odisha, Rajasthan, Maharashtra, Chhattisgarh, Jharkhand, Uttar Pradesh, Haryana, Himachal Pradesh, Karnataka, and Andhra Pradesh, with the two anchor states — Gujarat and Madhya Pradesh — collectively contributing 76.22% of Fiscal 2026 revenue.

As of March 31, 2026, the Company's Order Book stood at ₹7,953.18 Crores (₹79,531.81 million), spread across 103 projects, providing multi-year revenue visibility. Financial performance has scaled meaningfully.

The Company is promoted by Arjan Suja Rabari (Chairman & MD, 28+ years' experience) and Laljibhai Arjanbhai Ahir (MD, 16+ years' experience), who together hold a combined 82% pre-Offer promoter shareholding. LCC has also diversified into ancillary segments including metro rail construction, a Mining Development & Operations (MDO) project, and a precast concrete manufacturing unit at Jaspur, Gujarat.

2. Business Model and Revenue Streams

Revenue Mix — By Activity (Fiscal 2026) (₹ Cr)

The revenue base is near-entirely EPC-driven (99.84%) with a small annuity-like tail from O&M contracts embedded in completed EPC scopes.

Revenue Mix — By Segment (₹ Cr)

Note: The share of "Others" segment has more than doubled from 6.26% in FY2024 to 12.56% in FY2026 — reflecting the Company's stated strategy of diversifying beyond irrigation into metro, mining, and other EPC verticals.

Revenue Mix — By Client Type (₹ Cr — Order Book)

The Company is heavily reliant on public-sector contracts (state and central government departments), though the private customer share has expanded from 12.28% (FY24) to 20.93% (FY26).

Contract & Pricing Model

• Fixed-price, turnkey EPC contracts are the standard, awarded through competitive bidding
• Milestone-based billing, with escalation clauses partially insulating against cost overruns
• O&M tails of 5–10 years embedded in most large irrigation/water supply projects
• Bid success rate: 13.53% in FY2026 (vs. 21.35% in FY2025, 22.89% in FY2024) — showing some pressure on bid conversion

Client Concentration

• Top 10 customers contributed 72.30% of revenue in FY2026 (down from 84.10% in FY25 and 82.76% in FY24 — de-concentrating but still material)
• Top 3 customers accounted for 43.32% of FY2026 revenue (down from 56.31% in FY25 and 64.21% in FY24)
• Key relationships include Sardar Sarovar Narmada Nigam Limited, Madhya Pradesh Jal Nigam Maryadit, Narmada Valley Development Authority, Water Resource Investigation Department, and various state PWD/irrigation departments

3. Products and Service Portfolio

Core Service Lines

1. Canal Construction & Distribution Networks — earthwork, cement concrete lining, structures, service roads for canal reaches; underground pipeline distribution systems
2. Dams, Barrages & Hydraulic Structures — composite gravity dams, spillways, radial gates, earthen dam sections
3. Lift Irrigation Schemes — pump houses, MS pipeline rising mains, sub-stations, power transmission lines, pressurised irrigation networks to farmers' fields
4. Multi-Village Drinking Water Supply Schemes — turnkey EPC delivery with 10-year O&M
5. Pipe Distribution Networks & Micro-Irrigation Systems — drip/sprinkler irrigation networks

Emerging / Diversification Verticals

1. Metro Rail Construction — station construction, approaches, viaducts (already delivered one project)
2. Mining Development & Operations (MDO) — Bishrampur Mining Project (Chhattisgarh) currently under execution
3. Precast Concrete Manufacturing — production facility at Jaspur, Gujarat producing precast bridge girders, deck slabs, pier caps, and other structural elements for infrastructure and construction industries
4. Renewable Energy — stated intent to enter solar and wind EPC (FY2026 order book includes ₹241.55 Cr in renewable energy projects — up from nil in FY24)
5. Sewage Treatment & Desalination — bundled within the irrigation & water supply category

Top 10 Ongoing Projects (as of Fiscal 2026)

Order Book Composition & Stage of Completion

A large majority of ongoing projects (56.31%) are more than 70% complete — indicating a near-term revenue conversion tailwind, though the ~15.53% in the "up to 10%" bucket needs monitoring for execution ramp-up.

Delivery Capabilities

In-house design & engineering team of 698 qualified engineers (as of July 31, 2026)

Modern tech stack: SCADA, IoT sensors, Water Gems, Water Hammer, KY Pipe, Staad-Pro, AutoCAD, GIS, GPS

Owned equipment base including excavators, tippers, transit mixers, graders, JCBs, rock breakers, DGs, crushers, silos

Total permanent employees: 2,093 (as of FY2026), up from 1,942 (FY25) and 1,825 (FY24)

4. Key Business Strengths

• Multidisciplinary EPC leader in irrigation and water supply — one of the leading players in this segment by market share (per ICRA Report), with a track record of executing 80 completed projects across various government departments and clients
• Strong and growing Order Book of ₹7,953.18 Crores as of March 31, 2026 — providing ~2.2x revenue coverage on FY2026 top-line, with diversification across 103 projects and multiple states
• Substantial in-house design and engineering bandwidth — 698 engineers and technical personnel, backed by modern EPC software (SCADA, GIS, Staad-Pro, KY Pipe), reducing external dependence and enabling design–bid alignment at the tendering stage
• Robust risk management and project selection framework — structured pre-tendering, tendering, and execution-stage risk reviews, with escalation clauses in contracts and milestone-based billing that preserves cash flow
• Proven complex-project execution capability — track record includes Kachchh Long Canal Syphon (2.5 KM — one of the longest of its type per ICRA), Parbati Dam, Dudhai Sub Branch Canal, and other technically demanding hydraulic works
• Strong financial trajectory with expanding margins — Revenue CAGR of 21.50% and PAT CAGR of 53.23% between FY24–FY26; EBITDA margin expanded from 9.90% (FY24) to 14.44% (FY26); RoE at 32.24% and RoCE at 27.13% in FY26
• Experienced Promoter and Management leadership — Promoters have 28+ and 16+ years of relevant industry experience; senior management team includes ex-Government-of-Gujarat water resources professionals (Vice President with 44 years of experience) and ex-TATA Projects, Gammon India, Pratibha Industries leaders
• Diversified customer base across Central and State Government departments, PSUs, metro rail corporations, and private organisations — mitigating single-customer concentration risk

5. Future Growth Strategy

• Geographic expansion into new states — Beyond the current 12-state footprint, the Company plans to enter Bihar and Goa, leveraging state-level irrigation and water infrastructure demand fuelled by central schemes like PMKSY and Per Drop More Crop
• Diversification into adjacent EPC verticals — Foray into renewable energy (solar and wind), waste-water treatment, desalination, railways, metro rail, and sewerage network projects to reduce dependence on irrigation and unlock higher-margin opportunities
• Move up the project complexity and size ladder — Bidding for larger and more prestigious projects with potentially higher margins, leveraging strengthened balance sheet capacity to access larger bank financing
• Technology infrastructure investment — Continued investment in IoT, SCADA, ERP/SAP systems across procurement, quality management, and project execution, targeting cost and time efficiencies
• Working capital and cost management focus — Emphasis on timely bill certification and collections, escalation clauses to pass on cost overruns, and flexible use of sub-contractor networks to optimise capital deployment
• Talent scale-up and equipment base strengthening — Growing the design and execution workforce (2,093 employees as of FY26), continued investment in modern construction equipment fleet, and structured technical training programmes
• Deleveraging via IPO proceeds — Fresh Issue proceeds of ₹180 Crores earmarked for prepayment/repayment of borrowings, reducing high leverage (Debt-to-Equity of 0.97x — significantly above listed peers) and enhancing financial flexibility
• Focus on precast concrete monetisation — Ramp-up of the Jaspur (Gujarat) precast facility to serve infrastructure and construction customers, opening a product-led revenue stream alongside pure EPC services